Connected Toys by Interacting Device Market - Global Industry Research Analysis

According to Market Research Store, the global connected toys by interacting device market size was valued at around USD 8.11 billion in 2023 and is estimated to reach USD 36.05 billion by 2032, to register a CAGR of approximately 18.03% in terms of revenue during the forecast period 2024-2032.

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The connected toys by interacting device report provides a comprehensive analysis of the market, including its size, share, growth trends, revenue details, and other crucial information regarding the target market. It also covers the drivers, restraints, opportunities, and challenges till 2032.

Global Connected Toys by Interacting Device Market: Overview

Connected toys by interacting device are smart playthings equipped with technology that allows them to interact with children through various digital devices such as smartphones, tablets, and computers.

These toys use Bluetooth, Wi-Fi, or other connectivity methods to enable features like voice recognition, augmented reality, and personalized feedback. They are designed to make playtime more engaging, educational, and interactive, often including learning activities, games, and stories that adapt based on a child's preferences or progress.

Key Highlights

• The connected toys by interacting device market is anticipated to grow at a CAGR of 18.03% during the forecast period.
• The global connected toys by interacting device market was estimated to be worth approximately USD 8.11 billion in 2023 and is projected to reach a value of USD 36.05 billion by 2032.
• The growth of the connected toys by interacting device market is being driven by increasing parental interest in educational and interactive toys, as well as advancements in AI and IoT technology.
• Based on the type, the smartphone connected toys segment is growing at a high rate and is projected to dominate the market.
• On the basis of application, the children's education segment is projected to swipe the largest market share.
• By region, North America is expected to dominate the global market during the forecast period.

Connected Toys by Interacting Device Market: Dynamics

Key Growth Drivers:

• Technological Advancements: The integration of IoT, AI, and AR/VR technologies is enhancing the interactivity and learning potential of connected toys.
• Parental Demand for Educational Toys: Parents are increasingly seeking toys that not only entertain but also educate their children.
• Rising Disposable Incomes: Higher disposable incomes enable parents to invest in premium, technologically advanced toys.
• Changing Play Patterns: Modern children are more tech-savvy and prefer interactive digital play experiences.

Restraints:

• Privacy Concerns: Data privacy and security issues surrounding connected toys can deter parents from purchasing them.
• High Costs: High initial costs and potential ongoing subscription fees can limit market penetration.
• Technical Complexity: Some toys may be too complex for younger children to operate independently.
• Battery Life: Limited battery life can disrupt playtime and increase maintenance costs.

Opportunities:

• Integration with Educational Curriculums: Aligning connected toys with school curricula can increase their appeal to parents and educators.
• Personalized Learning Experiences: Utilizing AI to tailor content to individual children's needs can enhance learning outcomes.
• Social and Emotional Development: Connected toys can facilitate social interactions and emotional development through multiplayer games and virtual communities.
• Accessibility for Children with Disabilities: Adaptive technologies can make connected toys accessible to children with special needs.

Challenges:

• Interoperability Issues: Ensuring seamless connectivity between different brands and platforms can be challenging.
• Regulatory Hurdles: Compliance with safety and data privacy regulations can be complex and costly.
• Rapid Technological Evolution: Keeping up with the latest advancements can be resource-intensive for manufacturers.
• Competition from Traditional Toy Companies: Established toy companies may pose significant competition, especially in terms of brand recognition and distribution channels.

Connected Toys by Interacting Device Market: Segmentation Insights

The global connected toys by interacting device market is divided by type, application, and region.

Segmentation Insights by Type

Based on type, the global connected toys by interacting device market is divided into smartphone connected toys, app connected drones, console connected toys, and tablet connected toys.

In the connected toys market by interacting device type, smartphone connected toys lead as the most dominant segment. These toys, designed for children and young tech-savvy users, integrate seamlessly with smartphones, allowing users to control and interact with them via mobile applications.

They offer interactive and immersive experiences, often blending augmented reality (AR) and gamification elements, enhancing engagement through familiar smartphone interfaces. The convenience of smartphones, combined with the wide array of applications available, has driven the popularity of these toys among both children and parents, making them a top choice in the connected toys market.

App connected drones follow closely behind in market prominence. These drones, typically controlled via dedicated apps on smartphones or tablets, are popular for recreational purposes and beginner drone enthusiasts. Their easy-to-use interfaces, coupled with features such as camera integration, GPS, and obstacle avoidance, make them an attractive option for users seeking hands-on, interactive experiences.

The growing popularity of drones for capturing aerial footage, along with advancements in smartphone compatibility, has strengthened this segment's presence in the market.

Console connected toys are another significant segment, particularly among older children and gaming enthusiasts. These toys are designed to integrate with gaming consoles, enabling users to control physical toys that interact with virtual gaming environments.

Often equipped with advanced functionalities like motion sensing, these toys enhance the gaming experience, bridging the gap between digital and physical play. This segment has gained traction due to its appeal to dedicated gaming audiences who appreciate an added dimension of interactivity in their gameplay.

Lastly, tablet connected toys also hold a notable position in the market. These toys, specifically designed to interact with tablets, allow for larger screen interactions, making them ideal for educational and creative applications. Many tablet-connected toys incorporate interactive learning modules and creative games that appeal to both children and parents seeking educational benefits.

The segment’s growth is supported by tablets’ expansive screen real estate, which enhances the visual experience and encourages multi-touch interactions, making it well-suited for both individual and shared play.

Segmentation Insights by Application

On the basis of application, the global connected toys by interacting device market is bifurcated into children's education, game industry, audiovisual entertainment, and other.

In the connected toys market by application, children's education is the leading segment. These toys are designed to foster learning and development in young children through interactive experiences. They incorporate educational content, such as language learning, math, science, and critical thinking skills, within engaging formats that keep children interested.

By combining traditional educational methods with interactive digital features, these toys encourage active learning, making education enjoyable and accessible. Parents and educators are increasingly adopting these toys to support learning both at home and in schools, which has fueled this segment's growth in the market.

Following this, the game industry segment holds significant importance. Connected toys within this category often target older children and gaming enthusiasts who seek an immersive, hands-on experience that blends physical play with virtual elements.

These toys allow players to control characters or vehicles, often integrating with popular gaming franchises, which adds to their appeal. As gaming technology advances, the connection between physical toys and video games has created a unique space for enhanced gaming experiences that appeal to a wide range of audiences, driving growth in this segment.

The audiovisual entertainment segment is also prominent, targeting consumers who enjoy toys that provide audio and visual interactions. These toys often integrate with streaming services, music, or storytelling applications, offering experiences that are both interactive and engaging.

For example, connected toys in this category may respond to sound cues or allow children to create music or interactive stories. This segment has gained traction due to the growing demand for multimedia-rich entertainment experiences that offer creative outlets for children and teens.

Connected Toys by Interacting Device Market: Report Scope

Connected Toys by Interacting Device Market: Regional Insights

• North America is expected to dominates the global market

North America leads the connected toys market, driven by advanced technology integration, high smartphone and tablet penetration, and consumer willingness to invest in innovative, interactive devices for children. The U.S. market holds a significant share, with many prominent tech companies innovating in the interactive toy sector. Parental preferences for educational toys that offer both entertainment and learning value also contribute to the region's leading position. Additionally, regulations around data security and child safety foster trust, propelling the adoption of smart, connected toys among American families.

Europe follows closely behind, with countries like Germany, France, and the UK showing substantial interest in connected toys. The region’s emphasis on educational technology and increasing demand for STEM-based toys is encouraging market growth. Furthermore, stringent regulations surrounding data protection and child safety have boosted consumer confidence, positively impacting sales. The European market is characterized by strong demand for toys that combine play with developmental benefits, creating a favorable environment for the adoption of connected toys across the continent.

Asia-Pacific is emerging as a significant growth region for connected toys, with countries like China, Japan, and South Korea displaying robust demand. The region’s increasing internet penetration and expanding middle class contribute to growing interest in interactive devices for children. China, in particular, has a rapidly evolving market due to a strong manufacturing base and rising consumer spending on high-tech toys. Additionally, a tech-savvy population and growing investment in artificial intelligence and robotics contribute to the popularity of connected toys in this region.

Latin America, though smaller in market size, shows steady growth in the connected toys segment, with Brazil and Mexico as key contributors. Rising awareness about interactive and educational toys among parents and increasing smartphone penetration fuel demand. However, limited disposable income and economic challenges compared to other regions temper the market expansion. Nonetheless, as economic conditions improve, interest in connected toys is expected to rise, especially as consumers increasingly value digital education and entertainment tools.

The Middle East and Africa represent the smallest share in the global connected toys market, primarily due to limited internet infrastructure and lower consumer awareness. However, growth potential exists as internet access expands and economies develop, especially in countries like the UAE and Saudi Arabia. Wealthier families in these areas are beginning to adopt connected toys, particularly those that emphasize learning and cognitive development. The market remains nascent but could see future expansion with improving digital infrastructure and economic growth across the region.

Connected Toys by Interacting Device Market: Competitive Landscape

The report provides an in-depth analysis of companies operating in the connected toys by interacting device market, including their geographic presence, business strategies, product offerings, market share, and recent developments. This analysis helps to understand market competition.

Some of the major players in the global connected toys by interacting device market include:

• Mattel
• Hasbro
• LEGO Group
• Sphero
• Sony
• PLAYMOBIL
• BANDAI NAMCO
• K'NEX
• Konami
• Wonder Workshop
• PlayFusion
• Anki
• WowWee
• DXTR Labs
• Denmark
• Leka

The global connected toys by interacting device market is segmented as follows:

By Type

• Smartphone Connected Toys
• App Connected Drones
• Console Connected Toys
• Tablet Connected Toys

By Application

• Children's Education
• Game Industry
• Audiovisual Entertainment
• Other

By Region

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • France
  • Germany
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Rest of Latin America
• The Middle East and Africa
  • GCC Countries
  • South Africa
  • Rest of Middle East Africa

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